Want to open a Solo 401K

[John Dombrowski]

Hello everyone,

So I lost my job of 19 years so I think now is the time to get things going in a RE business. I want to start out with flipping homes. Not really interested in buy and holds......yet. So I want to roll over my 401K that I have with the company I used to work for into a solo 401K so I can use MY money to invest in RE. But in looking in to it, I am hitting some roadblocks in which I am being told that I can't do that if I want to flip homes.

Has anyone here in SoCal invested in RE with a Solo 401K? Can someone steer me in the right direction on how I can roll over my money and use a Solo 401K?

Thanks.....JD

[Dmitriy Fomichenko]

@John Dombrowski

First, in order for you to setup a Solo 401k you need an active business. If you are eligible - your business can adopt a self-directed Solo 401k plan and you can be in charge of the investments you make with it.

All retirement accounts are meant to be invested passively and if you invest in active business (flipping) you will have to pay UBIT tax on the profits and gains from this activity. 

Talk to @Joe Homs, he is one of my clients and helped many local investors.